Continuing Care Retirement Communities NAICS 623311

May 7, 2025 - Industry Stakeholders Seek Reforms Following Bankruptcies

• Industry stakeholders including providers and residents’ groups are cooperating to ensure the financial strength of continuing care retirement communities (CCRCs), according to McKnight's Long-term Care News. The move follows several nationwide bankruptcies that resulted in millions of dollars in lost entrance fees. “Since CCRCs require substantial resident investment, appropriate regulatory safeguards are needed to ensure promises made are promises kept," said Pat Burdsall, Florida Life Care Residents Association (FLiCRA) board president and resident at Indian River Estates in Vero Beach. Some of FLiCRA’s goals include revisiting current legislation to ensure the state is equipped to assist finally strapped CCRCs to protect residents’ assets, creating balanced regulatory standards that consider needed industry oversight and the operational needs of CCRCs, and backing “fair and transparent” laws that promote lasting stability for providers and residents.
• Some continuing care retirement communities (CCRCs) have found it difficult to maintain adequate skilled nursing staffing levels, according to Kiplinger.com Increasing labor costs and inadequate Medicare reimbursement rates are key causes of staffing shortages. The average cost to live in a CCRC is around $350,000, according to Kiplingers, and that’s just the entry fee. The Monthly Service Fee adds another $3,500 to $4,500 a month to the bill.

• Senior living organizations are diversifying their product offerings in response to the needs of baby boomers and members of Generation X, many of whom have not saved as much for retirement as their predecessors, according to McKnight's Senior Living. The median retirement savings of boomers is $202,000, and more than 40% of 55-to-64-year-olds have no retirement savings at all, according to the Federal Reserve Board. Senior living organizations are diversifying their product offerings, making it more affordable and attractive to those who have less income and fewer assets. Market-rate housing, co-housing, reduced or no entrance fees, a la carte services, and concepts such as “Cozy Homes” are becoming more attractive to the new consumer who desires more choice and less regimentation around retirement housing options.
• Nursing and residential care industry revenue increased 10.8% year over year and 2.0% quarter over quarter during the third quarter of 2024, according to the US Census Bureau. Continuing care retirement community industry employment and average wages for nonsupervisory employees increased slightly during the first month of 2025, according to the US Bureau of Labor Statistics. Continuing care retirement community industry sales are forecast to grow at a 4.74% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.